RETAILOBSERVER.COM AUGUST 2018
48
W
hen it comes to having an incredibly accurate track record
for seeing the "next big thing" at retail, few would challenge
that Ashley Furniture Industries rightfully tops the list.
Similarly, most would agree that Ashley's Kerry Lebensburger, the
company's veteran president of sales, has one of the industry's
sharpest pair of eyes when it comes to correctly predicting what's
around the next retail corner.
In a recent conversation, I asked Kerry what he saw as the next big
thing at retail. As usual, his answers were insightful, somewhat
unexpected, and thought provoking.
"Ironically, I think the next big thing for all retail, not just home
furnishings, is something small," he said. "In fact, you could well
argue that the next big thing at retail will be—and should be—the
return of the small-store format."
In making a case for the smaller-footprint store, Lebensburger
pointed to the success many big-box retailers including Walmart,
Target, Best Buy, Staples, and Gap have had launching smaller
neighborhood stores.
And in the case of pure-play online retailers, Lebensburger said
they have realized that brick-and-mortar retailers must contend with
two key cost centers: rent, and the expense of personnel.
"Although online retailers have successfully attacked brick-and-
mortar retailers on these two line items, online retailers are now at a
tipping point, and many of them realize that while they were able to
take lots of costs out of doing business, they will not be able to get
over that tipping point without opening stores of their own," the
Ashley executive explained.
The result, Lebensburger says, is a flurry of smaller pop-up stores
Mike Allen Furniture Trends
IN AN ONLINE WORLD,
WHAT'S THE FUTURE OF
BRICK/MORTAR RETAILING?
